The Federal Government has so far released about N1 trillion to states as bailout loan for payment of outstanding salaries to their workers.
Mr Godwin Emefiele, Governor of the Central Bank of Nigeria, CBN, disclosed this on Thursday, while briefing the National Economic Council (NEC) at its meeting chaired by Vice President Yemi Osinbajo, at the State House, Abuja.
According to him, a total sum of N689.5 billion has now been disbursed as salary assistance loan to States and additional N310 billion disbursed as Excess Crude Account-backed loans to States.
Meanwhile, on repayment of the loan, President Muhammadu Buhari has approved the suspension of monthly deduction at source for this month, and no such deductions would be made this month from the FAAC allocations to the States.
Minister of Finance, Mrs Kemi Adeosun, who announced this to Council members said the gesture was meant to give the States some financial relief at a time the FAAC allocations are dwindling due to the drop in oil prices
However, she said the President will continue to review the situation of the States on an ongoing basis and take appropriate relief measures as necessary and possible.
Adeosun also gave an update to the Council on the progress regarding the constitution of the NSIA Board.
The Minister told the Council that nominees have been selected to form a Search Committee that will bring up names of potential Board members of the NSIA.
The NEC comprises of the 36 state Governors, FCT Minister, Ministers of Finance, National Planning and the Central Bank Governor.
It meets monthly and chaired statutorily by the Vice President.
